Three plausible scenarios for outcome of next week’s ECB meeting – Nordea
|Nordea economists explain three plausible scenarios for the outcome of the European Central Bank's monetary policy meeting next week:
"The ECB hikes rates and keeps its tightening bias intact; this would be a hawkish scenario that would likely boost interest rate expectations more durably. We think this is the least likely of the three scenarios."
"The ECB raises rates by another 25bp, but softens its tightening bias to suggest the bar for further hikes has risen; such an outcome would likely boost rate expectations only briefly."
"The ECB leaves rates unchanged while retaining its tightening bias; we think such an outcome would put some downward pressure on interest rate expectations, even if it would be considered a hawkish hold. This is also our baseline scenario."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.